College Planning FAQ: Financial Fit, Test Scores, GPAs, Majors & Merit Aid Explained
Every month, families tuning in to the Ol’ College Try Podcast send in their most pressing college planning questions, and the May grab bag did not disappoint. From figuring out what “financial fit” really means, to SAT vs. ACT decisions, understanding GPAs, picking schools without a major in mind, and decoding merit aid: hosts Matt Carpenter and Peg Keough covered it all.
We pulled the highlights below so you can reference these answers any time. And if you have a question you’d like answered on next month’s episode, drop it on Instagram or YouTube wherever you follow us.
⚠️ Important Policy Update: New federal rule changes limit families to borrowing a maximum of $20,000 via the Parent PLUS loan. This makes finding your financial fit earlier in the process more critical than ever, and makes understanding merit aid a potential lifeline for many families.
What Does “Financial Fit” Actually Mean?
You hear the phrase constantly in college planning circles, but what does financial fit actually mean in practice? At CAP, it’s one of three core pillars (alongside academic fit and personal fit) that every family should evaluate when building a college list.
CAP’s software looks at financial fit through four clearly defined outcome buckets:
| Outcome | What It Means | Verdict |
|---|---|---|
| No borrowing needed | Total cost is within your budget. Zero gap. | Ideal |
| Borrow under $27,000 total | Gap is coverable by federal direct student loans alone | Great outcome |
| Borrow less than first-year salary | Total borrowing is less than projected starting salary in that field | Good |
| Borrow more than first-year salary | Total borrowing exceeds projected starting salary | Caution — not a financial fit |
“Financial fit is kind of what it says. How does this fit financially for our family with our budget? It’s a key piece of this — because this can create some no’s down the road after a lot of work’s been done and a lot of hopes are sitting on a school.”
— Peg Keough, Director of Education
The urgency around financial fit has grown significantly. New federal rules now cap Parent PLUS loan borrowing at $20,000, and estimates suggest that up to 40% of families who rely on PLUS loans may not even qualify due to credit requirements. The earlier families evaluate financial fit (ideally during the college list-building stage) the more options they’ll have to course-correct.
CAP’s rule of thumb: Never build a college list without running the numbers first. Financial fit is not a last-minute check. It’s the foundation of a smart college search.
SAT vs. ACT: Does It Matter Which One Your Child Takes?
Short answer: No, colleges do not prefer one test over the other. Whether your child submits an SAT or ACT score, admissions offices view them equally. That said, there’s a lot more nuance worth understanding.
💡 CAP’s Recommendation: Before committing to one test, have your child complete a full-length practice test for both the SAT and ACT. Many students perform noticeably better on one format versus the other, and knowing which one before investing in test prep can save thousands of dollars.
A few important points to keep in mind:
- Test optional doesn’t mean test irrelevant. Many schools returned to requiring test scores post-COVID. Even at schools that remain test optional, submitting a strong score can meaningfully improve admission odds. CAP’s own data shows higher admit rates for students who submit scores at many test-optional schools.
- Merit aid is often tied directly to test scores. If your family is counting on merit scholarships to make a school financially fit, a higher test score can unlock significant additional funding, sometimes $5,000–$25,000+ per year.
- You don’t have to submit a disappointing score. At test-optional schools, students who score below a school’s range can simply withhold those scores from their application.
- The UCs are an exception. The University of California system no longer uses SAT or ACT scores in admissions decisions. But for the vast majority of schools, it still matters.
“If you are going to pay for tutoring or do anything like that, you want to do it on the one they feel the most comfortable with. Do a real practice — not just the abbreviated hour-and-a-half version.”
— Peg Keough, Director of Education
Weighted vs. Unweighted GPA: What’s the Difference?
This one trips up a lot of families, especially because what your child’s high school reports may not match what colleges actually use in their review process.
| GPA Type | How It’s Calculated |
|---|---|
| Unweighted GPA | All grades averaged equally, regardless of course difficulty. Max is typically 4.0. |
| Weighted GPA | AP and honors courses carry extra point value. A B in AP English is worth more than a B in regular English. Max is typically 5.0. |
Here’s the important part: colleges often recalculate GPAs using their own methodology. A student who graduates with a 3.7 from their high school might be recalculated as a 3.8 at one college and a 3.5 at another. Admissions offices also want to see what courses a student took, not just the grade, so course rigor is evaluated alongside the number itself.
💡 Don’t stress too much: Some states (like Washington) don’t even report weighted GPAs on transcripts, and students from those states still get into top schools every year. Colleges are experienced at contextualizing transcripts from different systems.
My Child Doesn’t Know What to Major In. How Do We Pick Schools?
This is one of the most common concerns families bring to CAP, and the first thing to say is: your child is not alone. The majority of 16–18 year olds haven’t pinpointed a career path yet, and that’s completely normal.
Here’s how to approach building a college list when the major is undecided:
Step 1
Start with likes and dislikes
Even without a declared major, every student has subject preferences. Use those to eliminate broad categories. “Not a math person” narrows things down, even without a destination in mind.
Step 2
Prioritize schools with academic breadth
Avoid highly specialized institutions (e.g., dedicated engineering schools) if your child’s interests are still open. A school with a wide range of programs lets them explore and pivot to sophomore year without the stress of transferring.
Step 3
Consider an aptitude assessment
CAP admissions experts (including advisor JP) work one-on-one with students using structured aptitude tools that help identify strengths and interests they may not have articulated on their own. Ask your CAP advisor about this option.
Step 4
Remind your student: it’s okay not to know
Many adults end up in careers unrelated to their college major. The goal is to land at a school where exploration is possible, not to have a 20-year career plan at 17. Most students declare or confirm their major by sophomore year.
Public vs. Private vs. College vs. University: What’s the Difference?
Two sets of terminology that often get conflated. Here’s how to keep them straight.
College vs. University
The core distinction is graduate programs. Colleges generally do not have graduate students on campus; universities do, and universities tend to be more research-intensive as a result. That said, many colleges have distinguished research programs of their own. For undergraduates, one major practical difference is that at a college, you’re less likely to encounter graduate TAs leading sections of your classes.
Public vs. Private
| School Type | Key Characteristics |
|---|---|
| Public In-State | Lower sticker price for residents, state-mandated in-state enrollment quotas, but flagship schools are now highly competitive. Limited merit aid for in-state students. |
| Public Out-of-State | Higher sticker price (often $60–70K+), but schools actively recruit out-of-state students and some offer meaningful merit aid to high achievers. Net cost still needs close scrutiny. |
| Private | Same sticker price for all students regardless of home state. Wide range of admit rates and generosity, from highly selective schools that give no merit aid (Ivies, MIT, etc.) to schools that discount for every admitted student. |
Important: “My kid can always go to the state school” is no longer a safe fallback plan. Flagship state universities have become highly competitive and expensive, often $40,000+ per year all-in for in-state students. Treat them as a serious option that needs to earn a spot on the list, not a guaranteed safety.
Merit Aid: Which Students Are Most Likely to Receive Scholarships?
Merit aid refers to scholarships based on grades, test scores, or talent rather than financial need. It’s one of the most powerful levers families have for making college more affordable, but it doesn’t work the same way at every school.
💡 Important fact: Nearly 100 schools in the U.S. do not offer merit scholarships at all. This includes all Ivy League schools, MIT, and many highly selective liberal arts colleges (Williams, Amherst, Middlebury, etc.). If merit aid is a key part of your financial strategy, make sure your college list includes schools that actually offer it.
Where Merit Aid Is Most Accessible
|
Public In-State Limited but available Most flagship state schools offer modest in-state merit awards, typically a few thousand dollars. Don’t count on it as a major funding source. |
Public Out-of-State More generous, but relative Schools like UVM can offer $15–20K in merit aid to high-achieving out-of-state students, but against a $70K sticker price. Run the net cost numbers carefully. |
Private Schools Most opportunity Many private schools offer merit to every admitted student. This “high sticker, high discount” model is common and can make a private school surprisingly affordable. |
The Top 25% Rule of Thumb
Being in the top 25% of applicants at a given school, by GPA and/or test scores, is a strong general indicator of merit aid eligibility at institutions that offer scholarships. But the specifics vary enormously by school. University of Alabama, for example, is well known for offering substantial merit aid to high-achieving out-of-state students. Other schools have their own distinct thresholds.
This is exactly where CAP’s software does some of its most powerful work. You can enter your child’s GPA and test scores and instantly see scholarship projections across hundreds of schools, including the precise GPA or score improvement that would unlock the next tier of aid.
“It can be a great motivator. If we can get that 3.4 up to a 3.6, now we’re in a completely different tier of scholarship eligibility. And what wasn’t a financial fit before, suddenly is.”
— Matt Carpenter, Co-Founder, College Aid Pro
CAP’s rule of thumb: Start looking at merit aid projections in sophomore year, not senior year. GPA is much easier to build when you have time on your side. A small bump in grades or test scores can translate to tens of thousands of dollars in scholarship money.
Frequently Asked Questions
Do all colleges offer merit aid?
No. Nearly 100 schools, including all Ivy League institutions and many highly selective liberal arts colleges, do not offer merit scholarships. Make sure your college list includes schools where merit aid is actually available if it’s part of your affordability strategy.
Does it matter if my child submits an SAT score or an ACT score?
Colleges do not prefer one test over the other. However, which test a student performs better on can significantly affect merit aid eligibility. CAP recommends having your child complete full practice tests for both before investing in test prep.
Which GPA does a college use, weighted or unweighted?
It depends on the college. Most recalculate GPA using their own methodology based on the official transcript, regardless of whether the high school reports weighted or unweighted. What’s important is the transcript itself: the grades and the rigor of the courses taken.
Is it okay to apply to college without knowing what to major in?
Absolutely. The key is applying to schools with enough academic breadth that your student can explore and pivot without transferring. Most students finalize or change their major by sophomore year. The goal is to land in the right environment, not have the next 20 years mapped out.
Is the state flagship school still a good affordable “backup” option?
Not as reliably as it used to be. Flagship state universities have become highly competitive to get into and significantly more expensive, often $40,000+ per year all-in for in-state students. They should be evaluated on the same academic, personal, and financial fit criteria as any other school on the list.
See How Your Schools Stack Up for Financial Fit and Merit Aid
The MyCAP software shows you exactly what each college will cost your family, what you’re likely to borrow, and what scholarship money is within reach, before you apply.
Click here to listen to the full episode.
Content is based on the Ol’ College Try Podcast May 2026 episode featuring Matt Carpenter and Peg Keough. Information is provided for educational purposes and reflects current policy understanding as of 2026. Federal student loan rules and college aid policies are subject to change. Consult a qualified college financial advisor for guidance specific to your family’s situation.
